By Aditi Shah and Nandan Mandayam

NEW DELHI (Reuters)

Hyundai, Maruti Suzuki, and Tata Motors unveiled ambitious plans to expand their electric vehicle (EV) charging networks at the India auto show, addressing current challenges that deter customers from adopting EVs.

The five-day auto show in New Delhi, beginning on Friday, featured automakers promoting new EV models while India’s Prime Minister, Narendra Modi, advocated for increased investments in the third-largest market for automobiles, where sales growth is critical amid Tesla’s delayed entry.

Currently, fuel-guzzling vehicles remain predominant on India’s roads. Although EV sales are increasing, they still represent a mere 2.5% of annual sales.

Maruti Suzuki Initiatives

On Friday, Maruti Suzuki announced plans to install fast charging stations in India’s top 100 cities, aiming for one every 5-10 kilometers (3.1-6.2 miles). They are also considering launching a battery rental service. Meanwhile, Tata Motors and Hyundai will set up 500 and 600 public charging stations, respectively.

Maruti also plans to expand its charging network in urban areas and offer roadside assistance nationwide for depleted batteries. Charging anxiety is a significant concern for potential EV customers.

“We will leverage our vast network to provide fast charging support,” said Maruti’s CEO, Hisashi Takeuchi, at the show, where they also launched their first EV, the e Vitara SUV.

Maruti’s consideration of a battery rental service aims to mitigate a major barrier to EV adoption in India, following similar initiatives by Tata Motors, which offered free charging and steep discounts last year. Rival MG Motor also introduced a battery rental scheme.

Auto Show Highlights

At the New Delhi auto show, electric vehicles took the spotlight, featuring models from Vietnamese company Vinfast alongside domestic brands Maruti and Mahindra & Mahindra, as well as international competitors like BYD, Toyota, and Hyundai.

Modi encouraged investors, stating the government is prepared to support companies expanding in the sector, declaring, “This is the right time for a substantial investment in this domain.”

The Indian auto industry, which grew about 12% last year, is poised for further expansion driven by a large youth population and rapid urbanization, according to Modi.

Despite positive growth, challenges remain. India plans to broaden EV incentives for automakers and revise its policy initially influenced by lobbying from Tesla, which has yet to enter the market, Reuters reported in November.